After days of “tense negotiations,” the ECB and the Greek leadership finally hammered out a deal to save the troubled nation from default. The folks on Wall Street were riotously happy; the Greeks were merely rioting…and it is not difficult to see why.
February 20th, 2012 | Eric J. Fry | 1 comment | ContinuedAll Posts Tagged With: "eurozone"
An Orderly Greek Default
The headlines still focus on Greece. It is broke. Here is Lucas Papademos, describing what an orderly default would mean.
February 20th, 2012 | Bill Bonner | 0 comments | Continued
Europe’s Road to Nowhere (Part I)
Financially futile, economically erroneous, politically puzzling and socially irresponsible, the December 2011 European summit was a failure in its attempt to address the European debt crisis. Only the attending leaders and their acolytes believe otherwise.
February 18th, 2012 | The Daily Reckoning | 1 comment | Continued
End of an Empire
Empires come and go. And in coming and going, they seem to be symmetrical. The way up takes about as long as the way down.
February 16th, 2012 | Bill Bonner | 1 comment | Continued
The Dark Side of Profitable Banks
The Reserve Bank of Australia (RBA) left the cash rate at 4.25% last week. But one by one, the Big Four banks are raising their rates anyway.
February 13th, 2012 | Dan Denning | 4 comments | Continued
Why Europe’s Plan to End the Debt Crisis Can’t and Won’t Work
The actions need to try to stabilize the European debt crisis are well recognized. But Even if measures could be implemented as soon as possible, success is not assured. However without them, the chance of a disorderly collapse is increasingly significant.
February 8th, 2012 | The Daily Reckoning | 0 comments | Continued
The First Casualty of the Currency Wars
Can Australia’s currency continue its rampage while exporters burn? The currency wars have been going on quietly here at home for some time now. And going by the state of our exporters, we’re losing.
February 4th, 2012 | Nickolai Hubble | 3 comments | Continued
Currency Wars
The currency wars are heating up. On Wednesday, Federal Reserve boss Ben Bernanke promised speculators he would keep interest rates low until 2014.
January 27th, 2012 | Greg Canavan | 1 comment | Continued
The Final Countdown
Not interfering with the market’s adjustment process is simply allowing Schumpeterian “creative destruction” to operate, and cleanse the forest. But that process is anathema to well-compensated entrenched interests that suckle from the teat of the State. Banks, for example.
January 21st, 2012 | The Daily Reckoning | 1 comment | Continued
How “Adjusting for Slippage” Adds to Sovereign Debt Woes
“Adjusting for slippage” is the latest government fashion…and it is expensive. “Governments of the world’s leading economies have more than $7.6 trillion of debt maturing this year,” Bloomberg News reports, “with most facing a rise in borrowing costs.”
January 20th, 2012 | Eric J. Fry | 0 comments | Continued
Debts With Unsolvable Insolvency
Even before debt became such a big problem, real growth had already begun to disappear from the developed world. There has been none in Japan for the last 20 years…and almost no real growth in the US private sector for the last 10 years. In Europe, grosso modo, the story is similar.
January 18th, 2012 | Bill Bonner | 0 comments | Continued
The War Against the Euro
The Americans are trying to discredit the euro in order to perpetuate dollar hegemony, so goes the argument. Hmm. It’s possible. It’s also possible that all central bankers and monetary policy makers are singing from the same hymnal. Their answer to the end of the credit bubble is to try and pump it back up with currency debasement. In that case, this is a war of all against all.
January 18th, 2012 | Dan Denning | 5 comments | Continued
European Downgrades: Will There Really Be a Fallout?
On Friday, after the close of business in the stock market, S&P downgraded 9 European countries. Spain and Italy were both taken down another notch, leaving Italy with a BBB+ rating and Spain with an A. But the headline damage was done to France, whose triple-A rating got downgraded to AA+.
January 17th, 2012 | Bill Bonner | 0 comments | Continued
For the Love of Gold
Signalling a desperation for tangible wealth, customs officials arrested eight South Korean men for smuggling gold out of the country…in their rectums.
January 17th, 2012 | Dan Denning | 1 comment | Continued
Downgrade of European Financial Stability Facility Becomes a Reality
“It won’t be long before the EFSF has its own credit rating cut,” we wrote yesterday. And it wasn’t! Standard and Poor’s delivered the coup de grace yesterday. It downgraded the European Financial Stability Facility from AAA to AA+.
January 17th, 2012 | Dan Denning | 2 comments | Continued
